April 3, 20250
Following reciprocal tariffs announcements by US President Donald Trump on April 2, crude oil prices have declined further in the global commodity market
The international benchmark, Brent crude, dropped by 2% from previous $73.64 at the last session, to trade at $72.17 per barrel.
The US benchmark, West Texas Intermediate, WTI, also decreased by about 2.1%, settling at $69.01 per barrel as against the previous $70.48.
President Trump, on Wednesday signed an executive order imposing reciprocal tariffs on nations worldwide in fulfillment of a long-standing pledge.
READ MORE; Trump Policy Uncertainties Trigger Price As Gold Hits All-Time High.
The move has weighed on markets for months. A baseline tariff of 10% will be applied to all countries except Canada and Mexico, with steeper rates targeting what Trump has labelled the ‘worst’ trade offenders.
US Treasury Secretary Scott Bessent cautioned nations against retaliating, warning that any countermeasures could lead to even higher US tariff rates.
Trump’s tariff policy, has been described by European Commission President Ursula von der Leyen as a ‘major blow’ to the global economy, warning it will ‘massively suffer.’
Experts anticipate affected nations taken retaliatory measures, fueling market concerns of an escalating trade war that could dampen economic growth, weaken oil demand and exert further downward pressure on prices.
According to data released by the Energy Information Administration, EIA, late Wednesday, indicated that US commercial crude oil inventories increased by 1.4% during the week ending March 28.
READ MORE; Pressure On Oil Market As Brent Price Hovers At $70
Data also showed that inventories increased by about 6.2 million barrels to 439.8 million barrels against market expectations of a 6.37 million-barrel increase. Strategic petroleum reserves, which are excluded from commercial crude stocks, increased by 300,000 barrels to 396.4 million barrels.
Over the same period, gasoline inventories dropped by around 1.6 million barrels to 237.6 million barrels. EIA data showed that US crude oil production increased by 6,000 barrels per day (bpd) to about 13.58 million bpd during the week ending March 21.
US crude oil imports rose by 271,000 bpd to approximately 6.4 million bpd, while exports fell by 728,000 bpd to around 3.8 million bpd over the same period.
EIA had predicted that crude oil output in the country would reach an average of 13.61 million bpd in 2025 in the Short-Term Energy Outlook, STEO, released on March 11.
